Last week, we held an informative, free webinar on how to sell Recognition & Incentives. In case you missed it, you can register to view the on-demand version here:
http://event.on24.com/r.htm?e=303015&s=1&k=E25497F7A5A31C6ED409EF36939CFE39&partnerref=BIC
And for those of you who just want a quick recap – here are a few reasons WHY to sell Recognition & Incentives. Next week's blog will dig deeper into HOW.
Awards & Recognition is the 7th largest product category in the industry, growing 4% in 2010 and contributing $264million to overall industry sales. Recognition items such as awards, trophies and plaques are typically displayed on desks, walls, shelves, mantels and therefore have fewer impressions per month (223 impressions/month) BUT these products are kept around for a very long time AND generate the most favorable impression from recipients.
There is a difference between short term motivation and recognition. Gift cards, team luncheons, cash and travel motivate for short term goals. Tangible rewards that are kept (and therefore remembered) are tied to psychological well-being. Companies that recognize or otherwise engage employees see increased job performance and reduced turnover – in turn making a company more successful.
Recognition & Incentives are considered a top category for distributors in terms of PROFITABILITY! For example, the average order size for a low-cost pen is 1500 pcs and the average sale is $385 net. The average order size for a standard mug is 152 pcs and the average sale is $222 net. The average order size for awards is 12 pcs and the average sale is $863 net. See the difference?
Most companies have existing incentive, appreciation or recognition programs already in place and the average repeat/life cycle of a program is 5 years. If you're not selling awards to your existing customers, who is? Let's do the math…
Average sales value per order………………………………..$863
Average potential distributor profit per order………………..$518
Average potential number of orders per month…………………3
Potential Profit per year………………………………………$18,648
Potential Profit per repeat order/life cycle of 5 years…………$93,240
Tune in next week to learn HOW to sell Recognition & Incentives.
~Margit Fawbush
